re: Oil price chart: Dec 18 to today..

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Interesting, why did prices plummet in 2015?

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Main reason was the hit to the demand side from China

They came out with a correction to their growth rate that went from double digits to like 7% and the price of oil fell off a cliff.

Bottom line, there was way too much supply for the world demand. If I recall, before the crash, in 2014 the supply/demand equation was fairly balanced. The world consumed like 93 mm barrels a day and world production was about the same. Then Bam! China threw a monkey wrench with their projection of a slowdown or maybe an admission that they were lying about their growth rate. Oil prices plummeted. The supply /demand equation got upside down and Stockpiles started piling up .

The US continued to produce high levels of oil though. Exploration in the gulf halted though as prices were too low to justify that. Fracking took off.

Domestic oil and gas production providing cheaper energy and energy independence was strengthening our economy. Now O'Xiden will strengthen OPEC instead.

1968
Personally, I am not giving blame or credit to any president so please don't take this wrong. The original topic of the thread is that the current President is THE reason why oil prices have increased.

I do apologize if anyone has misunderstood what I was trying to say or if I misunderstood what you were trying to say but when people type "you are dumb" and give no evidence, well, you get really defensive.

What I was trying to say is you cannot look at the price of oil in any short time span and say, "see this jump/decrease in oil price, that is because of President X".

I think you are saying our previous President was greatly responsible for oil prices under his term. But when I look at the oil charts, I primarily see OPEC+ and other shocks in supply or demand affecting the price more than anything you can point at an say "see, this was him". At the end of 2 Presidents back, oil prices were actually lower than the late 2010's but somewhat still within the price range OPEC+ targets during the mid 2010's.

The topic of the thread is you can see they price change today is directly related to the current President. But based on previous trends, I do not see how one can say that.

Slidell - If I understood correctly you were showing a butterfly effect, can you agree that when these type of things happen, there are so many other wildcards also at play that is is actually difficult to give direct price credit/blame to any one individual?

dafif - A role in my job is as an analyst (but not for the oil industry, that's a hobby). I am a numbers guy. I think we can both agree that we process information differently and probably will not be able to get each other to see eye to eye. That will lead to only arguing and personally, I don't enjoy that.

Thanks 9458, that was informative about the refineries.
I tried to discuss this in a thread several weeks ago to try to show the duplicity of low gas/oil prices vs healthy oil industry. But I got cussed at and people telling I was for a political party and biased. Not a healthy discussion so I dropped it.

In another thread, someone mentioned withholding military. I found it interesting how they would allow pretty much or biggest ally in OPEC+ to fall into Iran's hand over $10 oil price increase.

I’ve been in the industry for 15 years, I voted for Trump twice but the intelligent ones in my industry who can drop their own bias for independent thought know that energy independence is a myth based on our need for foreign oil via diesel consumption. This coupled with the fact that the US shale boom and the recklessness of US operators large and small drove the price of oil down significantly before the COVID stuff killed demand. We need to stabilize the oil markets again. OPEC is being responsible in that regard, most everyone would rather have 5 years of $75-80 bbl oil vs 3 of triple digit oil. You want a gradual increase of price per bbl for long term stability in O&G, not sudden shockwaves. This also achieves consistency and stability in the industry regarding qualified and experienced personnel so you are much more efficient with your projects and costs etc. These sudden shockwaves are lightning in a bottle and wreak havoc on consistency in the industry and ultimately as fast as it rises, is as hard as it falls.

In addition, gradual increases in price per bbl are less of a shock to consumers rather than a skyrocket overnight.

There is some truth to the Chinese activity in regards to purchasing oil and gas leases and rights in TX and OK and trying to fund some projects but honestly it hasn’t been enough to even put a drop in a bucket.

I wish people would stop making the Keystone Pipeline such a big deal lol that pipeline was part of President Trump’s new trade agreement with Canada when he changed the trade agreements with Mexico and Canada. Canada requested this in the new trade agreement to move their oil from Alberta.

The US didn’t lose anything by shutting down the pipeline, the number of jobs lost was much much smaller and they were only temporary anyway for the US.

Regarding the Iran/Saudi question, you have to look back in the oil embargo of the 70s, the formation of OPEC but also Nixon getting the petrodollar to where oil can only be traded in USD. Saudi is the largest producer of oil in the world and also has the largest proven reserves by a long shot. Their wells are lifetime producers unlike the high decline wells here in the US shale plays. Again, we need their oil, they need our protection, this relationship goes far back as stated above. Interesting fact also, the largest refinery in the US (Motiva Port Arthur) is wholly owned by Saudi Arabia. This was done quietly under Obama’s administration. Democrats love big oil, they just aren’t so loud about it nowadays.

Ever notice why Saddam and Qaddafi were killed? It wasn’t political uprising, it was that they attempted to trade their countries’ oil for a form of gold currency which is bypassing the USD. The United States and other world powers are not going to allow that. There is so much more than what most think they know about the industry.

You oil and gas guys are ok w $4 gal gas this summer and the havoc it wreaks on the rest of the economy

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Ever notice why Saddam and Qaddafi were killed? It wasn’t political uprising, it was that they attempted to trade their countries’ oil for a form of gold currency which is bypassing the USD. The United States and other world powers are not going to allow that. There is so much more than what most think they know about the industry.

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This ^^^ is also why bitcoin and other crypto currencies will eventually be addressed by the Fed/Global Banking Cabal. Same thing with gold and other precious metals, the banks will do everything in their power to maintain control over their fiat currency scam.

prices will go up, but jobs wont follow as we are restricting our production so all the extra money will go to OPEC, Russia, China

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prices will go up, but jobs wont follow as we are restricting our production so all the extra money will go to OPEC, Russia, China

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Refineries will find ways to boost their daily output to cash in on the higher gas prices so you will see projects starting in those existing plants.

You may even see Shell Convent crank back up before Summer, or, possibly its sale for someone else to re-start.

New exploration will not occur under this Administration of Retards, though.